Metaplanet Inc. Eyes Bitcoin Investment Through 1 Billion Yen Bond Issue
Summary:
Metaplanet Inc., a Tokyo-based firm, plans to issue bonds to raise 1 billion yen ($6.26 million) for purchasing Bitcoin. The move, seen as a response to economic pressures in Japan, will add to the company's current crypto assets, which already reached 141.07 BTC after buying additional 23.25 BTC earlier in June. The firm also revealed a Bitcoin-first strategy, although its average purchase cost per Bitcoin indicates negative returns. Its Bitcoin purchasing spree and boosting shares have led to comparisons with US software company MicroStrategy.
Metaplanet Inc., a consulting and investment firm based in Tokyo, intends to raise 1 billion yen ($6.26 million) through a bond issue to facilitate the purchase of Bitcoin (BTC). On Monday, June 24, the company stated that their board had given the green light for this initiative, with the emphasis being on long-term BTC holding. They further clarified that an annual yield of 0.5% would be paid by these bonds. Metaplanet's shares displayed an upward trend on Monday, trading at 96 yen ($0.60). The company's stock value has increased by more than 500% this year to date, per Google Finance figures. Trading resumed after lunch on Monday with Metaplanet hitting a peak of 104 yen ($0.65). Google Finance served as the source of these facts. In related news, Bitcoin experienced a 40-day low, with a 2.6% decrease in its value over the previous day, bringing it to $62,733. This followed an almost $72,000 valuation earlier in June, according to CoinGecko. Were Metaplanet to buy Bitcoin worth 1 billion yen today, they'd secure almost exactly 100 BTC—close to 99.84 BTC to be precise. This prospective acquisition would increase their existing crypto assets, which topped 141.07 BTC after the company announced on June 11 that they had purchased an additional 23.25 BTC. The company's initial purchase of 117 BTC in mid-May was positioned as a "Bitcoin-first, Bitcoin-only" strategy in response to the enduring economic trials in Japan. In an early June report, Metaplanet revealed an average BTC purchase price of 10.28 million yen, or $65,365 — indicating that their strategy was currently yielding a negative return. The company's Bitcoin purchasing practices and subsequent noteworthy stock price hike have seen it compared to MicroStrategy, a U.S. software enterprise. The latter company holds the title for the largest Bitcoin possession by a public firm, with 214,400 BTC equating to a $13.4 billion value, based on Bitbo data.
Published At
6/24/2024 9:02:15 AM
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